New Star Investment Share Discussion Threads

[topvest] 02/6/2009 21:46

Recently bought a few of these. Interesting that John Duffield has control here and that this investment trust is not likely to be moving across to Henderson New Star. Given that the veteran entrepeneur is reported to be setting up a new asset management business, I think I'm correct in saying this is now his only quoted vehicle. Could therefore line this vehicle up for some interesting possibilities. Always risk when a company is controlled by a large holder, but interesting given the sizeable discount. Any thoughts?

[westcoastrich] 01/3/2009 09:32

February 19, 2009

NS&I cuts interest rates
The Government-backed bank has reduced rates on its popular savings accounts by as much as 1.35 per centLauren Thompson
National Savings and Investments has reduced interest rates on its variable-rate savings accounts by up to 0.75 per cent.

Its popular Direct Isa now pays 1.8 per cent, whilst its easy access savings account pays only 0.3 per cent on balances up to £10,000.

Fixed-rate accounts have been reduced by up to 1.35 per cent for new borrowers, taking its one-year Guaranteed Income Bond to 1 per cent.

The Premium Bonds prize fund rate remains unchanged at 1.8 per cent - the rate put in place after the Bank's cut from 4.5 per cent to 3 per cent last November - and will be held for at least the March 2009 draw. November's move to 1.8 per cent cut the total value of prizes from £87.8 million to £57 million, and the pot is likely to be cut further after March.

Related Links
National Savings & Investments explained
Savers benefit as inflation falls
The Government-backed bank blamed the falling base rate and a drop in gilt yields for the rate changes.

Meanwhile, Nationwide Building Society has introduced a new range of fixed rate bonds paying up to 3.75 per cent. To get this top rate you need to tie up your savings for four years. The one-year bond pays 3.35 per cent.

[westcoastrich] 19/2/2009 09:13

Financial News
Thursday February 19, 08:29 AM
Savers Hit Again As NS&I Slashes Rates
By Sky News




National Savings & Investments is cutting interest on its variable-rate saving products by up to 0.75%.

The fresh blow to savers comes after Bank of England policymakers slashed rates to an all-time low of 1% two weeks ago.

Under the new rates, which come into force today, returns on NS&I's cash ISA fall from 1.4% to 0.9%.

Rates on its easy access accounts have fallen by 0.5% for savers with £25,000 or more


Those with less than £10,000 now receive just 0.3% interest after a 0.15% cut.

Government-backed NS&I is also cutting interest on its fixed-rate savings products by up to 1.35%.

It said the move - which will not affect savers with existing fixed-rate products - reflected lower yields on Government gilts since last September.


The Premium Bonds prize fund rate remains unchanged at 1.8% - the rate put in place after the Bank's cut from 4.5% to 3% last November - and will be held next month's draw at least.

November's reduction from 2.85% to 1.8% cut the total value of prizes from £87.8m to £57m, and the pot is likely to be cut again in April.

[westcoastrich] 17/1/2009 09:41

As a gamble Premium Bonds have definitely deteriorated. In November 1998, when Bank Base Rate stood at 6.75%, the prize fund stood at 5%. With BBR now at 2%, the prize fund has dropped to 1.8% which has affected the number of winners.

[westcoastrich] 27/12/2008 14:52

just opened the post - nationwide telling me they are changing terms (to their own benefit) on my savings account

[westcoastrich] 27/12/2008 11:09

Zero interest rates on the way
2 hours ago

The chill wind of recession took millions of families on an unwelcome history lesson in 2008.

Stalling growth, inflation unleashed by soaring oil prices and growing dole queues gave Britain a bitter flavour of the 1970s.

The gloom is also giving an entire generation too young to remember the last slump of the early 1990s - let alone the era of flares and the Bay City Rollers - its first taste of a new and uncomfortable experience.

This year, the Government's proud boast of 63 successive quarters of growth stretching back to 1992 came to a shuddering halt as a once-in-a-century banking crisis increased its vice-like grip.

Between July and September, the economy shrank by a worse than expected 0.5%, and a recession - defined as two successive quarters of contraction - will be confirmed early in 2009.

But the crisis gripping the world's developed economies is such that earlier this month the United Nations drew an even more fearful historical parallel as it warned of the first fall in global output next year since the 1930s and the Great Depression.

It may be a shock to the 'Nice' generation - the product of Bank of England Governor Mervyn King's non-inflation, consistent expansion decade - but the pain is being felt by everybody, although the recession is not yet "official". It has hit anybody with savings, as official interest rates were slashed all the way from 5.5% to 2% in a bid to kick-start a moribund economy. Inflation - now falling, but still almost double the official 2% target - is eroding the real worth of their money.

The year marked the first serious test for the Bank's rate-setting committee, which was criticised for keeping rates unchanged at 5% between April and October. This was despite protests from committee member David Blanchflower, whose increasingly strident calls for cuts were ignored until the very future of the financial system was in doubt.

The Bank can only hope that rates at an all-time low will give the boost needed. But as borrowing costs get closer to zero and rate-cutting ammunition runs out, next year could also see policymakers take the unprecedented step of so-called "quantitative easing" - effectively printing more money - to get banks lending again and revive the UK economy.

After a year of economic storms, further hurricanes are likely in 2009. But for the Government of the day and UK taxpayers - the true years of reckoning lie further ahead.

[westcoastrich] 27/12/2008 09:25

yess boss dollars boss

[westcoastrich] 26/12/2008 12:21

Interest rates cut: Odds of winning Premium Bonds to worsen – again
If National Savings & Investments (NS&I) follows its usual practice, the prize fund for Premium Bonds will fall to 1pc for the February draw and the odds of winning will be at their longest in the bonds' 52-year history.

By Paul Farrow
Last Updated: 4:41PM GMT 04 Dec 2008

The total value of Premium Bond prizes is likely to fall from £57m to £30m per month National Savings has a policy of reducing or increasing the Premium Bond prize fund when rates fall or rise. Last month the rate was reduced from 3pc to 1.8pc to take into account the 1.5 percentage point cut in the base rate. This means that the odds of winning a prize – 36,000 to 1 – are already at their longest in the bonds' 52-year history.

Assuming NS&I follows its usual practice, the prize fund will fall to around 1pc from 1.8pc (it will never pass on the full cut or rise because it takes into account the tax-free element of the prize) for the February draw, with the pot tumbling from £57m to £30m. The Prize fund totalled £89m in November.

It emerged recently that there were now just two winners for the £25,000 monthly prize, compared with 19 in November and 78 in December last year. The sharp cuts in the base rate in recent months have hit the number of winners that NS&I can name.

In cash terms, the total prize fund fell from £89m in November to £58m in December, with the number of prizes dropping from 1.56m to 1.07m in the same period.

A NS&I spokeswoman would not be drawn on what the odds would be in light of the latest rate cut. She said: "The size of the overall prize fund will reduce by whatever rate reduction we choose to apply following a base rate decision. However, this in itself does not determine the odds.

"In view of the extraordinary circumstances we are facing we would need to think very carefully about all of the options available to us. We fully understand the public interest in Premium Bonds and the odds of winning. However, it would be wrong of us to be drawn into hypothetical calculations at this stage."